Invest

Trading opportunities including fundamentals, technical analysis, and news or event-related items.

Make Your Dogs Of The Dow Howl

The Dogs of the Dow is a popular investment strategy that has been around for more than 25 years. Popularized by Michael B. O'Higgins in the book Beating The Dow, the strategy selects the ten Dow Jones Industrial Average (DJIA) stocks with the highest yield at the beginning of each year. There are proponents and critics of the strategy and this article is not intended to defend or criticize the strategy. Dogs of the Dow was unleashed on the public in 1991, long before stock market tools and market data were readily available. I figured it was time that I try to make some improvements with today's state of the art tools. I would like to note here that O'Higgins has made modifications to his original strategy, including Beating the Dow With Bonds, which has the investor fully into stocks or fully into bonds, based on the market's earnings yield (inverse of the P/E ratio) and the price of gold. I won't be chasing these modified strategies, but starting from the original.

The Dogs of the Dow is a popular investment strategy that has been around for more than 25 years. Popularized by Michael B. O'Higgins in the book Beating The Dow, the strategy selects the ten Dow Jones Industrial Average (DJIA) stocks with the highest yield at the beginning of each year.

Read more ...

Source: http://seekingalpha.com/article/4038693-ma...
by Steve Auger